Havila Kystruten (HKY) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with revenue up 62% year-over-year to NOK 464 million, driven by higher occupancy, increased average cabin rate, and onboard spend per passenger night.

• EBITDA improved to NOK 128 million from negative NOK 36 million in Q3 2023, marking the second consecutive positive quarter.

• High customer satisfaction, Net Promoter Score of 72, and multiple industry awards, including best cuisine at the Wave Awards 2024.

• Environmental targets met, including a 30% reduction in CO2 emissions and food waste per passenger night at 66g.

• 73% of 2024 capacity sold by end of November, with confirmed bookings expected to reach 75% and 41% already booked for 2025.

Financial highlights

• Q3 2024 revenue reached NOK 464 million, up from NOK 226 million in Q3 2023.

• Q3 EBITDA was NOK 128 million, compared to -NOK 36 million in Q3 2023.

• Average cabin rate rose 30% year-over-year to NOK 5,200; onboard spend per passenger night increased 11% to NOK 770.

• Operating costs increased to NOK 336 million, mainly due to higher activity and payroll adjustments.

• Targeting full-year 2024 EBITDA of NOK 200 million (10-15% margin), with 2025 guidance of NOK 400-500 million (20-30% margin).

Outlook and guidance

• Expecting average occupancy just below 75% for 2024, with 2025 targets of EBITDA NOK 400-500 million, occupancy 75-80%, and ACR growth 20-30%.

• 2026 outlook includes EBITDA NOK 600-800 million, occupancy ~80%, ACR growth 10-15%, and margin 30-40%.

• 41% of 2025 capacity already booked at higher prices; focus on balancing occupancy and price to maximize margins.

• Booking trends remain strong, with early firm bookings and balanced north/south route occupancy.

• Positive revenue growth expected to continue in 2025, supported by strong demand and a sustainable profile.